Mercedes-Benz and BMW are known to be arch rivals, with both companies looking to go one up on another. Mercedes-Benz has been the leader in the luxury car space for quite some time now but in 2009 BMW displaced it from the numero uno position. Now Mercedes feels that BMW has resorted to discounting and model stripdowns to gain volumes. But BMW replies back saying that their top position in the luxury car market was due to the strength of its brand. Also the Bavarian car maker feels that they understand the consumer better and are able to offer them what they want.
“If I talk about my rivals, mainly BMW, their path to leadership has been built on discounting, model stripdowns and low-entry cars. This is not what Mercedes does. We are clear on maintaining our product quality and brand, while having an aggressive pricing. A stripped down model really does not work for Mercedes and the luxury customers. Mercedes is not there in certain segments like the mini SUV category, which has given rivals an edge in volumes. Therefore it is unfair to compare the companies in terms of absolute numbers till the time we have a full portfolio,” Debasis Mitra, Director (sales and marketing), Mercedes-Benz, said.